All Forum Posts by: Luther Wilson III

Hey, @Serge DuLaudAllemans, it really depends. On a lot of different factors... Your real estate investing experience, how much capital you have to invest, your overall risk tolerance along with your investing goals and where AND how you wish to invest - all of this and a bunch more comes into play when trying to decide whether you should get into real estate right now or not. Buying & holding single-family homes is still working okay. They're somewhat easier to manage, you can BRRR them out, and the barrier to entry for Midwest B & C class SFHs is still relatively low. Additional access to private capital and realistic expectations are two things that active investors right now have to be more mindful of right now. Our clients and partners are still making it happen... The main difference that we've seen is that there's a lower # of "home run" types of deals - the spreads are tighter. Out of 5 - 10 deals, the # of them in which we're "all in" on the purchase and renovation costs, at or below 75% of the ARV has gone done significantly. Hence the squeeze on the wholesalers and fix & flippers... Buying & holding is way more forgiving. If you're gonna get in right now, it's gonna be on you to choose a path that makes sense to you and that's somewhat realistic. As things ease up or tighten up we'll all need to adjust accordingly anyway. I'd encourage you - if you do have access to capital - to go ahead and get in the game! Your plan has gotta make sense, though! Cheers! :)

It's all about timing. I think once you've pulled the trigger, hold, and give it some time before refinancing. Hopefully by then you'll have more equity! Depending on the lender you go through and what type of refi they offer - some seasoning is likely gonna be required anyway. How long from the time of purchase do you plan on refinancing? That's the key part. Cheers, man. HELOC's have been coming through in the clutch a lot lately for Investors.

Cheers, @Tristan Romero.  Congrats on locking down your first deal.  If you’re able to take care of the thing and can get decent rents out of the place then perhaps it’s worth a go.  I personally would try to avoid them because of the liability and more.  

It might work out fine if just one of you signs the purchase agreement. So long as that's stated in your operating agreement - that just one of you can sign on behalf of the LLC. When it comes time to actually close then the lender (if you're getting a loan) and the title company will need to be clear on who can sign what. Even though the deed or title of the property is in the LLC name - someone still has to sign for it. 🙂

We have a client who had a similar situation go on here. We ended up just renting the duplex out to one larger family.  We ended up renting it to a family with 3 adults and 6 kids lol   🙂

If you’re planning on staying in one unit then - in the meantime - you gotta figure out how to split the utility cost with your tenant.  You could eat the cost for a higher rent amount.  Or you could have them pay you a portion of the cost from your own bill.

Yo, @Carlos Morales-Benitez, if you can find and bring solid, off market deals to your investors then you are golden...  If you can do so consistently then you will be in high demand.  Besides deal finding, I think renovation management and then property management skills would be next as far as what investors need.  You don't have to be hands on with everything - if you are able to form the right relationships and strategic partnerships then your business has no choice but to grow.  Out of those three:  1.  deal finding  2. renovation outsourcing or managing and 3.  property management --  If you can get good at 2 out of the three then you'll eventually be turning business away.  :)

Cheers, @Harrison Beethe, welcome aboard!  We're here in the Kansas City market making moves as well.  It's a good market with some pretty solid opportunities!  

Sure thing.  You’re gonna want to get clear on whether you’re doing a true owner finance deal (one in which you’d get the deed) or something like a contract for deed or a lease purchase (in this case, you wouldn’t get the deed yet).  Then from there you gotta come to an agreement with the seller on the following:  Purchase Price, Down Payment, Term or Length of note, Interest Rate and then come up with the monthly payment.  Is there gonna be a prepayment penalty or a balloon?  That needs to be clear as well.  How will the yearly/monthly taxes and insurance be handled or escrowed?

If there’s an existing mortgage on the property then you’d be looking at doing a wrap of sorts and you’d be in second position. Getting the seller on board should be interesting. I’m guessing they may not want to deed the property over to ya? It’d probably be safer for them to avoid the due on sale clause and it’s less risk for them overall anyway…  As long as you’re cool with it then maybe see what you can structure.

It might be helpful to find another investor in your town who has experience with this and then seek them or their escrow closer or attorney out.  They might be able to assist.   

Yeah, @Greg Larson, jump in there. If you can get into a good deal utilizing creative financing, in my opinion, that might be the best option right now but next up for me is a BRRR. Location is super important, having access to additional private capital is very helpful, and having realistic expectations about how much you'll cash flow and how much you could have left in the deal (built in equity) - all are keys and things to be mindful of, especially as things are shifting - if you do decide to go forward with a SFH BRRR deal. Project size is another thing too… I'd much rather take on a deal with a smaller spread and less built in equity, if I can get into and out of the renovation faster and if the location is better - than I would a larger renovation project, on a lower price point property in a not-as-nice area, with more "potential" built in equity. I hope you get the idea. You get to choose - based on your access to capital and risk appetite. Cheers!

It depends on the college and what programs they offer.  Along with the fields of study you mentioned, they could look at Entrepreneurship programs as well.  I kinda lucked out when I went to college the school I went to had just put together a Entrepreneurship program and they had a Real Estate emphasis option for it as well.  🙂